Discussion and possible action on any and all matters regarding Resolution No. 2282. A Resolution of the Mayor and City Council of the City of San Luis, Arizona, an Arizona Municipal Corporation, to authorize the application for a Clean Water State Revolving Fund Loan from the Water Infrastructure Finance Authority of Arizona (WIFA). (Monica Castro, Director of Finance)

The staff has determined that a Water Infrastructure Finance Authority of Arizona (WIFA) loan paid by revenues from the utility system would be advantageous to the city to finance the wastewater capital improvement project in an amount not to exceed $1,500,000. One of the programs WIFA has is the Clean Water State Revolving Fund (CWSRF) Program. It is a federal-state partnership. WIFA is the administrator for Arizona's CWSRF program, providing communities with a permanent, independent source of low-cost financing for a wide range of water quality infrastructure projects. The financing can be tailored to the needs of the city.

An administrative resolution is required by WIFA that will authorize the City to apply for the Clean/Drinking Water State Revolving Fund financial assistance from WIFA for City wastewater projects.  After the adoption of this resolution, the City will apply for financial assistance from WIFA and if matters proceed satisfactorily to the City and WIFA, WIFA will prepare a loan agreement to be entered into by and between the City and WIFA for such financial assistance.  The form of such a loan agreement would be approved at a subsequent City Council meeting.  The final terms of a loan agreement would be known later in the process but would include a federally subsidized interest rate that could result in lower interest costs to the City and could include what WIFA calls “forgivable principal”, which functions essentially like a grant.